FENCE Act

This legislative proposal seeks to amend the Internal Revenue Code of 1986, specifically targeting the eligibility criteria for 501(c)(3) tax-exempt organizations . Its primary objective is to introduce new conditions that organizations must meet to maintain their tax-exempt status. The bill stipulates that an organization will not qualify for 501(c)(3) status if it engages in a pattern or practice of providing financial assistance, benefits, services, or other material support to individuals it knows or reasonably should know to be unlawfully present in the United States. This provision aims to restrict support for undocumented immigrants by tax-exempt entities. Crucially, the amendment includes important caveats: it explicitly states that organizations are not required to demand proof of citizenship or verify an individual's immigration status . Furthermore, it ensures that religious organizations are not compelled to act in violation of their established religious beliefs, providing a safeguard for faith-based services.